According to The Malaysia Shopping Malls Association (PPKM), It’s too early to grant rental rebates to mall tenants and retailers as the Covid-19 impact is yet to be fully assessed in Malaysia
They may, however, consider to permit retail tenants to operate shorter business hours and provide marketing assistance.
According to the following retail associations: Malaysia Retailers Association, Malaysia Retail Chain Association, Bumiputra Retailers Organisation, Asean Retail-Chains & Franchise Federation and Branding Association of Malaysia, they suggests that shopping malls should give tenants rental discounts between 30% and 50% to help them handle the Covid-19 outbreak effects.
Sales and trends for the next few months will first be monitored and assed prior to grant any rental rebates, as decided by PPKM.
The association also added that the poorer sales performance currently faced by shopping retailers is mainly because of the post-festivity season.
The post-festive season, that is after Christmas, New Year, Chinese New Year, school holidays, and such is already known as low season on retail industry. Mall owners and operators should instead prepare strategies and ways to rationalize the business in the next few months. PKKM had several meetings with the government requesting assistance to maintain cash flow and employment among mall owners and tenants. To read more latest news from malaysia.